Zhang Baohui, a professor of political science at Lingnan University in Hong Kong, said that America's departure from the UPU was part of US President Donald Trump's strategy for the "all-out containment" of China but its significance, in comparison to the damage caused by US tariffs on Chinese imports, would be limited.
The White House said on Wednesday it planned to leave the 144-year old worldwide postal alliance, which it described as a "flawed system" that allowed developing countries like China to ship goods around the world more cheaply and put American firms at a disadvantage.
US officials say the growth of transactions on the internet is facilitating a high level of counterfeit goods shipped to the USA, as well as narcotics and fentanyl, with the aid of the lower shipping costs.
National Economic Council Director Larry Kudlow on trade talks with China and USA tensions with Saudi Arabia and the Trump administration's efforts to reduce regulations. Trump has announced US withdrawal from the Paris agreement to mitigate climate change and an global deal with Iran to curb Tehran's nuclear program.
No country has been labeled a currency manipulator by the United States since the Clinton administration tagged China in 1994. Poor and developing countries are assessed lower rates than wealthier countries, an arrangement that has benefited China.
Trump, who told "60 Minutes" last weekend that his biggest regret as president wasn't quickly "terminating" the North American Free Trade Agreement after he took office, has also been eager to emphasize that he is tough on trade by pulling out of a treaty, even a relatively obscure one, according to people familiar with his thinking on the matter.
The pact has always been a source of frustration for presidents of both parties and prompted complaints from small businesses, big retailers like Amazon and shipping giants like UPS. But Navarro and Trump dismissed those changes as insufficient to deal with the explosion of online free shipping offers of goods from China. While formally declaring China a manipulator wouldn't have triggered sanctions or other USA penalties, it would have worsened an already tense relationship between the world's two biggest economies.
In Wednesday's report, the Treasury also said Germany, India, Japan, South Korea and Switzerland remained on a "monitoring list" of countries whose currency practices required "close attention".
Under the current UPU system, a one-pound package shipped by a US business costs between $10 to $13.
It is not clear how much the disparity costs US taxpayers and retailers, in part because the Postal Service does not release detailed country-by-country shipping breakdowns.
The US government said in a report that the recent depreciation of the yuan would "likely exacerbate" China's already large bilateral trade surplus of $390 billion with the United States over the past four quarters through June 2018.